3 Reasons Why You Should Consider Modifying Your Mortgage

3 Reasons Why You Should Consider Modifying Your Mortgage

Posted By
Haynes & De Paz, P.A.

Times are tough for many Floridians. With a practice focused on foreclosure
defense, I often have people coming into my office describing how difficult
their situation is, and how they have fallen behind on their mortgage.

Then, you have certain people that know that cannot afford their payment
much longer. Whether that is because their interest rate has gone up,
or because they have lost some of their income and are dipping into savings.

My advice for both parties above is to consider hiring a Florida loan modification
lawyer, and here are three reasons why:

1) Potentially lower your monthly payments to a long term affordable amount

My first main goal in obtaining a loan modification is to lower people’s
monthly payments. The reason I try and obtain this result is twofold:
A) give the homeowner some breathing room with their monthly budget and
B) long term comfortability. If someone is barely able to make their new
loan modification payment, it doesn’t really help them. We are into
helping homeowners keep their home, long term.

2) Lowering and obtaining a flat interest rate

I am baffled at some of the interest rates I have seen homeowners obtain
from past loans. I have seen them as high as 8%. That is utterly ridiculous.
Lately, it is no surprise that interest rates are starting to soar. However,
my goal is to obtain an interest rate that is fixed and below 3.5%. Again,
this is important for long term retention. All too often interest rates
are adjustable and people simply can’t afford their new payments.

3) Possible principal reduction

Before you go and get too excited, this is rare that principal reductions
occur. That being said, I have received principal reductions in probably
3-5% of our loan modification applications. Some of which have been over
$100,000.00 in forgiveness. From my experience, this takes strategic negotiation
to have any chance at receiving such. However, if obtained, it makes a
huge difference in the loan moving forward.

If you are interested in modifying your loan, call me for a free consultation.
I have handled thousands of loans and will be able to sum up your situation
very quickly!